13 Feb 18
News

Vehicle financing on the rise in Brazil

Vehicle financing in Brazil is on the rise, especially when it comes to used vehicles.

Approximately 5.1mn vehicles were financed in 2017, up 9.7% from the previous year, according to local vehicle distribution federation Fenabrave.

Meanwhile, according to data from the Sao Paulo stock exchange B3, a total of 1.8mn of these vehicles were new, representing a 3.5% increase year-over-year.

The main way to finance vehicles last year was through direct consumer credit (CDC) which represented 83.5% of the operations in the country. A total of 4.3mn units were CDC financed, up three percentage points from the previous year.

As for the remaining operations, 728,000 units were financed through local car purchasing pools known as consórcio, 47,800 through leasing, and 64,000 through other lines of credit.

Authored by: Daniel Bland